“The recent appreciation of the euro exchange rate dampens the inflation outlook,” said the European Central Bank (ECB) Chief Economist Phillip Lane in a blog post just a day after the ECB left policy unchanged.
“The scale of upward revision in core inflation has been significantly muted by the appreciation of the euro exchange rate.”
“It should be abundantly clear that there is no room for complacency on inflation.”
“Headline inflation to remain negative for the rest of the year.”
“Governing council stands ready to adjust all of its instruments accordingly.”
EUR/USD holds the bounce from 1.1810 on Lane's jawboning. At the press time, EUR/USD gains 0.14% to trade at 1.1836.
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